In the real world you are of course correct, but since Ian is constructing a
model, he could in principle construct one in which technology did not
change, but there were a plethora of different capital goods of different
ages and different depreciation rates.
-----Original Message-----
From: ope-bounces@lists.csuchico.edu [mailto:ope-bounces@lists.csuchico.edu]
On Behalf Of GERALD LEVY
Sent: 14 December 2010 12:33
To: Outline on Political Economy mailing list
Subject: Re: [OPE] FW: Linear transformation between equilibrium prices and
lab our values
> I agree that one possible hypothesis is that the disorder we see in real
profit
> rates arises from technical change. Another possibility is that it arises
from
> variations in the turnover and depreciation rates of capital stocks in
different
> industries and firms which would mean you have a large number of coupled
oscillators
> with different periods which could have a similar dispersive effect.
Hi Paul C:
Well, I don't see how you can analytically separate these two hypotheses
since
variations in the turnover and depreciation of capital stocks in different
industries
and firms is often an expression of technical change. We can see this
clearly
when we consider moral depreciation. To be able to empirically measure the
effect on the
rate of profit of depreciation and turnover of constant capital which is
independent of technical change we'd have to disaggregate depreciation into
physical and moral depreciation but that would presume there are accurate
methods
for calculating moral depreciation across firms and industries. But, I know
of
no such methods - do you?
In solidarity, Jerry
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Received on Tue Dec 14 12:03:48 2010
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